FTX Gears Up for Massive $5 Billion Payout to Creditors on May 30, 2025

FTX and Recovery Trust Drop Bombshell: $5 Billion Coming Your Way

Hold onto your hats, crypto fans! FTX is about to drop a whopping $5 billion in a second distribution to its creditors on May 30, 2025. That's right, the FTX Trading Ltd. and the FTX Recovery Trust just spilled the beans through a fiery press release on May 15. This cash is heading straight to the pockets of those with allowed claims under the crypto giant's Chapter 11 reorganization plan.

Who's Getting the Cash? Details Inside

This isn't just any payout, folks. This second tranche is going to cover eligible creditors in both the Convenience and Non-Convenience Classes. But hold up, you've got to have completed the pre-distribution processes to get your hands on this cash. FTX isn't messing around!

Mark Your Calendars: May 30, 2025

FTX isn't wasting any time. They've scheduled this massive Second Distribution for May 30, 2025. If you're eligible, you'll see your funds from either Bitgo or Kraken within one to three business days. And after this phase, FTX will keep you in the loop with updates on future dates.

From February to Now: A Timeline of Action

Remember the first phase back in February 2025? The record date for the next distribution was set for April 11, 2025, covering Class 5 customer entitlement claims and Class 6 general unsecured claims. They even included holders of convenience claims who hadn't received their payouts yet. FTX had their eyes on this second distribution all along, and now it's happening!

John J. Ray III Speaks Out

John J. Ray III, the mastermind behind the FTX Recovery Trust, isn't holding back. He said, "These first non-convenience class distributions are an important milestone for FTX. The scope and magnitude of the FTX creditor base makes this an unprecedented distribution process, and today's announcement reflects the outstanding success of the recovery and coordination efforts of our team of professionals. Our focus remains on recovering more for creditors and resolving outstanding claims."

What's the Breakdown? Here's the Scoop

Get ready for some serious numbers. Creditors with allowed class 5A Dotcom Customer Entitlement Claims are getting 72% of their funds. Those with class 5B U.S. Customer Entitlement Claims? They're seeing 54%. And don't forget classes 6A General Unsecured Claims and 6B Digital Asset Loan Claims at 61%. But the real shocker? Allowed class 7 Convenience Claims are raking in a whopping 120%!

The Fallout and the Comeback

Let's not forget, FTX crashed and burned back in November 2022. It was a mess, thanks to fraud by convicted company bigwigs, including the notorious Sam Bankman-Fried. But here we are, watching FTX rise from the ashes with this massive payout.

FTT Token Soars on the News

And get this, the FTX Token (FTT) just spiked over 13%, hitting highs of $1.33. When FTX imploded, FTT prices plummeted from $25 to a dismal $0.87 in a matter of days. But today, it's flying high again!